Long-Term Debt

The carrying value of our long-term debt at March 31, 2014 and December 31, 2013 was as follows:



(In thousands)		March 31, 2014		December 31, 2013
5.375%	Senior Notes due 2015	$	54,484	$	54,481
9.000%	Senior Notes due 2017	191,850		191,611
3.000%	Convertible Senior Notes due 2017 (1)	358,985		353,798
2.250%	Convertible Senior Notes due 2019 (2)	333,071		330,182
	Total long-term debt	$	938,390	$	930,072

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(1)	The principal amount of these notes is $450 million.


(2)	The principal amount of these notes is $400 million.

Convertible Senior Notes due 2017 and 2019

During the three-month period ended March 31, 2014, our closing stock prices exceeded the thresholds required for the holders of our Convertible Senior Notes due 2017 and our Convertible Senior Notes due 2019 to be able to exercise their conversion rights during the three-month period ending June 30, 2014. As a result, at March 31, 2014, the equity component related to our Convertible Senior Notes due 2017 was reclassified from permanent equity to mezzanine (temporary) equity as “equity component of currently redeemable convertible senior notes.” We will evaluate whether the conversion threshold requirements have been met on a quarterly basis, and will report the equity component related to our Convertible Senior Notes due 2017 as temporary equity for any period in which the debt remains currently convertible.

Issuance and transaction costs incurred at the time of the issuance of the convertible notes are allocated to the liability and equity components in proportion to the allocation of proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. The convertible notes are reflected on our condensed consolidated balance sheets as follows:



	Convertible Senior Notes due 2017							Convertible Senior Notes due 2019
(In thousands)	March 31, 2014				December 31, 2013			March 31, 2014				December 31, 2013
Liability component:
Principal	$	450,000			$	450,000		$	400,000			$	400,000
Less: debt discount, net (1)	(91,016		)		(96,202		)	(66,929		)		(69,818		)
Net carrying amount	$	358,984			$	353,798		$	333,071			$	330,182

Equity component of currently redeemable convertible senior notes	$	91,016			$	—		$	—			$	—

Equity component (net of tax impact) (2)	$	(25,337	)	(3)	$	65,679		$	77,026		(4)	$	77,026		(4)

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(1)	Included within long-term debt and is being amortized over the life of the convertible notes.


(2)	Amount included within additional paid-in capital, net of the capped call transactions (Convertible Senior Notes due 2017) and related issuance costs (Convertible Senior Notes due 2017 and 2019).


(3)	Primarily represents the deferred tax amount related to this transaction due to the reclassification of the debt discount to temporary equity.


(4)	There was no net tax impact recorded in equity related to the Convertible Senior Notes due 2019, as a result of our full valuation allowance.

The following tables set forth total interest expense recognized related to the convertible notes for the periods indicated:



	Convertible Senior Notes due 2017
	Three Months Ended March 31,
($ in thousands)	2014			2013
Contractual interest expense	$	4,399		$	3,375
Amortization of debt issuance costs	300			283
Amortization of debt discount	5,186			4,712
Total interest expense	$	9,885		$	8,370

Effective interest rate of the liability component	9.75		%	9.75		%



	Convertible Senior Notes due 2019
	Three Months Ended March 31,
($ in thousands)	2014			2013
Contractual interest expense	$	2,250		$	675
Amortization of debt issuance costs	316			92
Amortization of debt discount	2,889			819
Total interest expense	$	5,455		$	1,586

Effective interest rate of the liability component	6.25		%	6.25		%